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US-China Relations

Xinhua Commentaries on U.S. “Security Concerns” over Chinese Products

Amidst recent concerns within the U.S. and other Western countries over security threats posed by Chinese electric cars, cranes, 5G equipment, and apps (e.g. TikTok), the official Chinese state news agency Xinhua has published commentaries saying that such concerns are “nothing but baseless excuses to suppress China.”

Xinhua published an article titled “The American Political Spectacle: No More Pretending! Spilling the Beans! American Politicians Have Been Speaking Blunt Truths Recently.” The article said: “Not long ago, Raimondo (U.S. Commerce Secretary) inadvertently revealed a ‘shocking secret’ during a televised interview. She attacked Chinese-made smart cars (EV), claiming they can ‘constantly collect data’ and send it back to China, ‘like iPhones on wheels.’ Something about this statement doesn’t seem right. Netizens exclaimed, ‘It is confirmed that Apple phones monitor the world!’”

Another article titled “Abusing ‘National Security’ Is a Poison to Global Development and Security” hinted that China may retaliate by restricting U.S. products within China over “security concerns”: “When some countries label Chinese products and equipment as ‘unsafe,’ they seem to forget that Chinese people may also worry about whether such countries’ own equipment poses a threat to Chinese national security. Tesla, an American company, is all over the streets of China; is it also collecting sensitive data in China? With over a hundred million users in China, can Apple’s iPhones unknowingly transmit Chinese users’ data back to the U.S.? U.S. Commerce Secretary Raimondo claimed that ‘Beijing can shut down three million Chinese cars driving on American roads simultaneously.’ Shouldn’t China also worry that Washington could simultaneously shut down millions of Apple phones owned by Chinese users? If these devices are deemed unsafe, does it imply that China also needs to take equivalent precautionary measures, ultimately leading to mutual decoupling, with each [party] seeking self-preservation?”

Sources:
1. Xinhua, March 18, 2024
https://app.xinhuanet.com/news/article.html?articleId=aa7f401b5cd60612370be7ecb7aff923
2. Xinhua, March 16, 2024
https://app.xinhuanet.com/news/article.html?articleId=86aa9d6962ef2cb9fac651da50511c1d

Miles Yu Refutes Wang Yi’s “Four Questions” Blasting the US

On March 7, 2024, at the press conference of the Second Plenary Session of China’s 14th National People’s Congress, Chinese Foreign Minister Wang Yi raised four questions challenging the United States. On March 9, 2024, Miles Yu, former Chief China Adviser to the U.S. State Department, refuted Wang Yi’s questions point by point.

  • Wang’s Question #1: “If the United States always says one thing and does another, where is the credibility of [its being] a great power?”

Yu: There is credibility because the U.S. follows international norms, while the Chinese Communist Party (CCP) is self-absorbed and delusional. The CCP’s credibility has long been lost. It has become isolated internationally, turning into a source of risk and conflict. Domestically, everyone is thinking of escaping out of China or lying flat (not doing work anymore). There is no credibility for the CCP.

  • Wang’s Question #2: “If the United States becomes nervous and anxious at the mention of ‘China,’ where is the confidence of [its being] a great power?”

Yu: The American people, the Chinese people, and the whole world are pleased to hear the word “China,” but they become nervous and anxious when they hear “CCP,” because the CCP is an enemy of freedom. “Why does the CCP become nervous and anxious at the mention of the ‘United States,’ which represents freedom and democracy? Where is the confidence of your glorious party?” Yu countered.

  • Wang’s Question #3: “If the United States only seeks its own prosperity and does not allow other countries to develop legitimately, then where is international justice?”

Yu: The development of the CCP is not legitimate and goes against international justice.

  • Wang’s Question #4: “If the United States insists on monopolizing the high-end of the value chain and only allows China to remain at the low end, then what of fair competition?”

Yu: The CCP uses the mechanism of international fair competition to undermine the principle of fair competition, endangering the global free trade system. Not only is the United States vigilant, but the entire global market economy system is also actively working to prevent the CCP’s anti-market behavior and policies.

Source: Epoch Times, March 9, 2024
https://www.epochtimes.com/gb/24/3/9/n14198330.htm

Lianhe Zaobao: U.S. Consul General Says Hong Kong Internet Censorship Tightening

Singapore’s primary Chinese-language newspaper Lianhe Zaobao recently reported that Gregory May, the U.S. Consul General in Hong Kong, said Hong Kong’s Internet censorship is “tightening and is becoming more like that in Mainland China.”

Connectivity and data security concerns in Hong Kong have reached a level that prompted some U.S. business executives to use disposable phones and laptops when visiting the city. Gregory May said that Hong Kong “began to go downhill and tried to delete certain content from the Internet or block certain websites.”

He called for Hong Kong to stop restricting freedoms, and he expressed the belief that Hong Kong could effectively improve its reputation by releasing of people facing prison for political speech incidents, e.g. Next Media founder Jimmy Lai. He also said that “Hong Kong still has significant business advantages — as long as the Hong Kong government abides by its commitment in the Sino-British Joint Declaration to maintain a high degree of autonomy and remain unchanged for 50 years, relations between Hong Kong and the United States may improve.”

Source: Lianhe Zaobao, March 1, 2024
https://www.kzaobao.com/bolg/20240301/157420.html

China Daily Editorial Advocates French “Strategic Autonomy,” Collaboration with China

China Daily published an English-language editorial on French-Chinese relations titled “France’s insistence on strategic autonomy means it’s immune to bloc confrontation.” The editorial advocates for France and other European countries to collaborate with China and not go along with U.S. attempts at isolating China. Guangming Daily also published a Chinese-language commentary on the editorial.

Here are some excerpts from the China Daily piece:

“This year marks the 60th anniversary of the founding of diplomatic relations between China and France.”

“Thanks to France’s strategic independence, as well as the two countries’ common commitment to multilateralism, Sino-French relations have demonstrated stability and sustainability amid the global volatility. Despite the attempts of the United States to drive a wedge between them, they continue to seek to explore the potentialities of new areas of cooperation.”

“In the 25th China-France Strategic Dialogue … in Paris on Tuesday, “the willingness and openness the French side expressed to continue to deepen the already broad and productive pragmatic cooperation with China was a clear dismissal of the ‘security concerns’ the US has been hyping up with regard to cooperation with China. The green economy, clean technology, nuclear energy, artificial intelligence and aerospace are all ‘sensitive fields’ that the US seeks to exclude China from.

“That, along with the stable bilateral cooperation between China and other major EU members, including Germany and Spain … should serve to prove to the decision-makers of the European Union the necessity of upholding the bloc’s strategic autonomy in handling relations with China, as well as the rationality of providing a fair, transparent and sound business environment for Chinese enterprises. Doing so can help avoid the EU footing the bill for the US’ geopolitical gambling.”

Sources:
1. China Daily, February 21, 2024
https://global.chinadaily.com.cn/a/202402/21/WS65d5eb9fa31082fc043b85dd.html
2. Guangming Daily, February 22, 2024
https://world.gmw.cn/2024-02/22/content_37160410.htm

People’s Daily on Blinken’s “Table and Menu” Statement

At the Munich Security Conference in Germany on February 17, U.S. Secretary of State Antony Blinken said that the U.S. is in a “strategic competition” with China. He remarked, “If you are not at the table in the international system, you’re going to be on the menu,” emphasizing the importance other countries actively participating in the “multilateral system” alongside the U.S.

People’s Daily published a “quick commentary” responding to Blinken’s “table and menu” statement. Below are some key excerpts from the People’s Daily response:

“This blunt statement by U.S. Secretary of State Blinken once again exposes the fundamental logic of American politics and diplomacy as ‘law of the jungle,’ where the strong prey upon the weak. American politicians are faithful followers of a wolfish culture.”

“America’s history of territorial expansion, wealth accumulation, and strengthening of national power is a history of external plunder, filled with destruction of other countries and the tears and blood of innocent people. From the massacre and land seizure of Native Americans, to the enslavement and exploitation of Africans, to interference and control in Latin America, to the creation of one humanitarian disaster after another in the Middle East — the U.S., in safeguarding its own interests and hegemony, has engaged in launching wars, imposing sanctions, and recklessly subverting other countries. Violence, coercion, deceit, and plunder are the ‘standard options’ in its toolbox, putting everyone on its [dinner] ‘menu.’ Meanwhile, it disregards and tramples upon the morality and order of which its politicians often speak.”

“In recent years, the U.S.’ bullying has become more rampant and ugly. The reason is that America’s hegemonic status is being challenged as the U.S.’ own problems continue to emerge while the increasingly balanced global power and the collective rise of developing countries lead to a deeper hegemonic anxiety. The U.S. has begun to use its military and financial hegemony to continuously transfer crises to the world, reaping benefits all the while. Those placed on the ‘menu’ by the U.S. are not only developing countries but also its allies.”

“In the U.S.’ cruel ‘table and menu’ calculation, European countries seem to sit at the table as allies of the U.S. most of the time. However, the U.S. also puts European countries on its ‘menu’ when necessary, making them the objects on which American capital and politicians feast. The U.S. did just this in exploiting the Ukraine crisis to pressure and squeeze Europe, or in using subsidies to induce companies to move their production bases from Europe to the U.S. This is the basic logic of American politics. This is why Europeans often lament: ‘Americans have stabbed us in the back.'”

Source: People’s Daily, February 22, 2024
http://world.people.com.cn/n1/2024/0222/c1002-40181269.html

HK01: MSCI Removes 66 Chinese Companies From Indices

HK01, a popular Hong Kong-based online media network, recently reported that finance company MSCI removed 66 Chinese stocks from its benchmark China Index and its All Country World Index during the latest MSCI quarterly review. The move by MSCI comes as Mainland China and Hong Kong stock markets plummeted, losing trillions of dollars in market value from their peak in 2021.

Most of the removed companies are in the real estate, pharmaceuticals, internet, and aviation sector. Specific names removed including famous companies such as Weibo, China Southern Airlines, Ping An Healthcare and Technology, as well as real estate developers Gemdale Group and Greentown China. The number of Chinese companies removed was the greatest seen in at least two years. The removals will be effective from the close of trading on February 29, 2024.

China’s weight in global investment portfolios has fallen significantly as China’s real estate industry sinks further into crisis, Chinese consumer spending continues to weaken, and alternative emerging markets such as India continue to perform well. Some experts expressed that MSCI’s stock removals highlight how money is moving out of Chinese equities as investors reduce their exposure. Such investor behavior is largely due to recent weakness in Chinese market fundamentals, ongoing financial instability, regulatory uncertainty, and concern over national-level risks.

Source: HK01, February 14, 2024
http://tinyurl.com/5t2te57y

NetEase: Mexico Surpassed China as Largest Supplier to U.S.

Data released by the U.S. Department of Commerce showed that in 2023 Mexico surpassed China for the first time in over 20 years to become the largest source of goods imported by the U.S.

Well-known Chinese news site NetEase (NASDAQ: NTES) ran a report about the Department of Commerce Data. Below are some excerpts from their article:

As part of the U.S.’ so-called “weaning off dependence on China” strategy, the U.S. Biden administration is urging companies to find suppliers in allied countries or move manufacturing operations back to the United States.

The value of U.S. imports from Mexico increased by nearly five percent from 2022 to 2023, reaching more than US$475 billion. At the same time, the value of U.S. imports from China fell by about 20 percent, to US$427 billion.

This is the first time in more than 20 years that Mexico has surpassed China and become the largest source of imported goods to the United States. The last time the value of U.S. imports from Mexico exceeded that from China was in 2002.

The biggest decline in U.S. imports from China was in commodities such as computers, electronic products, chemicals, and pharmaceuticals, which are all ‘politically sensitive’ for the United States.

The impact of COVID-19 on global supply chains has also forced American companies to look for nearshore suppliers. … However, the actual situation is more complicated than that. Some Chinese manufacturers have already established factories in Mexico too.

Source: NetEase, February 8, 2024
https://www.163.com/dy/article/IQDSPONL051481US.html